50159
Iran Trims Airbus Deal Amid US Regulatory Delays
Iran Trims Airbus Deal Amid US Regulatory Delays
  1. Economy
  2. Domestic Economy

Iran Trims Airbus Deal Amid US Regulatory Delays

A person familiar with the process said the US Treasury was moving ahead in its discussions and a license decision, initially on the Airbus side of the deal, could come in weeks
  1. Economy
  2. Domestic Economy

Iran Trims Airbus Deal Amid US Regulatory Delays

Iran has reduced the number of airplanes it plans to buy from Airbus by six amid delays in US regulatory approvals and may knock one plane off a similar deal for more than 100 with Boeing, an Iranian official said.
Iran announced plans in January to buy 118 jets worth $27 billion at list prices from Europe’s Airbus but has faced unexpected delays in receiving US licenses, which are needed due to the large number of US-supplied parts.
The country’s deputy transport minister told a conference on Monday there were signs the US Treasury would release the crucial licenses by the end of this month.
But speaking again on Tuesday, he stepped up criticism of what Iran sees as unfair delays in unblocking the deal, which is part of efforts to rebuild Iran’s aging fleet that were built into a pact between Tehran and world powers to lift western sanctions in exchange for limits on Iran’s nuclear activities.
“There are six fewer aircraft. These are the ones that were due to be delivered in 2016,” Asghar Fakhrieh Kashan told Reuters, speaking on the sidelines of the CAPA Iran Aviation Finance Summit in Tehran.
“The deal to be finalized with Airbus in the coming weeks could therefore be for 112 aircraft instead of 118.”
Kashan said that on paper, these include 12 of Airbus’s A380 superjumbos but Iran has not yet decided whether to take the double-decker jets and has an option to convert them to smaller models, he said.
Reuters first reported in June that Iran was having second thoughts about taking the world’s largest passenger plane.
The latest move takes further shine off the deal signed in Paris during a visit by Iranian President Abbas Rouhani, but western officials say it still represents a promising symbol of a new political and economic relationship with Iran.
Kashan said Boeing, which has also agreed to provide jets to Iran as it emerges from sanctions, may see its deal clipped by one jet to 108 aircraft instead of 109.
Boeing said in June it had provisionally agreed to sell 80 planes directly to flag carrier Iran Air and to oversee the lease of a further 29.
The Iranian official did not say whether the canceled aircraft would come from the column of direct purchases or leases, nor whether it had been cut for the same reason as Airbus, but Boeing is also on the waiting list for licenses.
Both planemakers said they do not comment on discussions with airlines and would only act within US regulations.
Speaking at the CAPA conference, western envoys sought to allay Iranian concerns over the delays in approving the airplane deals. They expressed optimism the deals would go ahead and reiterated their commitment to last year’s nuclear deal.
“Unpicking years of sanctions is a complex task, complicated further in Washington by the fact that US primary sanctions remain in effect,” French Ambassador to Iran Francois Senemaud said.
One person familiar with the process said the US Treasury was moving ahead in its discussions and a license decision, initially on the Airbus side of the deal, could come in weeks.
Others have suggested the politically sensitive decision on whether to supply western jets, opposed by many Republicans, could slip beyond November’s US presidential election.

Short URL : https://goo.gl/Gc3U3B
  1. https://goo.gl/TEJXPh
  • https://goo.gl/J0wYFm
  • https://goo.gl/enVS1R
  • https://goo.gl/ReQoTg
  • https://goo.gl/yOXaUB

You can also read ...

Georgian Prime Minister Giorgi Kvirikashvili (L) shakes hands with President Hassan Rouhani in Tehran on April 22.
Iran has agreed to activate a corridor stretching from the...
Foreign exchange rates have stabilized and made imports less costly.
Each ton of imports costs Iran $237 less on average since the...
A number of financial transactions originating from Iran had not conformed to UK’s banking standards.
The bank accounts of Iranian nationals living in the UK...
Regional Startup Event to be Held in Baku
Seedstars World, the global seed-stage competition to identify...
New Nokia Cell Phones Enter Iran Early
HMD Global which now produces Nokia-branded phones is getting an...
Ali Divandari
The Fourth Iran-Europe Banking and Business Forum is to focus on...
71% Growth in EGFI Export Coverage
The Export Guarantee Fund of Iran, the state-owned export credit...
The “Manufacturing” sector’s growth was mostly attributed to the 35.6% rise in the production of motor vehicles, thanks to the unused production capacity.
The Iranian economy enjoyed increased oil production and growth...

Trending

Googleplus